In Grand Central rezoning, city will compete to sell air rights

TRD New York /
Jul.July 17, 2012 09:00 AM

More details continue to emerge on the Bloomberg administration’s plan to rezone Midtown East and encourage new office development in the area. The New York Post explained the process developers must endure to unlock the increased floor-area-ratio, and therefore greater building heights, the city is permitting under the plan.

As previously reported, developers would be permitted to build to 24 FAR between Lexington and Madison avenues and 42nd and 46th streets, as of right, and to 18 FAR or 21.6 FAR along nearby swaths. While the “as of right” stipulation means they won’t have to go through the lengthy land-use review process, it does mean they’ll have to purchase each additional buildable square foot from the city. 

The cost won’t come cheap, according to the Department of City Planning, which said it would far exceed the $120 per foot Related paid at Hudson Yards. The money would go to a District Improvement Bonus fund that would pay for transit, public space and infrastructure upgrades nearby.

The Post noted that one alternative exists to procure air rights. Andrew Penson’s Argent Ventures owns approximately 1.5 million square feet of them in the area after it purchased the land below and above Grand Central Station in 2007. By 2017, when the new zoning rules take affect, the Post said Penson could be in competition with the city to sell air rights to Midtown East office developers. [Post]


Related Articles

arrow_forward_ios
From left: Port Authority Bus Terminal, Grand Central and Penn Station (Wikipedia, Pixabay, CDC)

TRD Insights: Focus may shift to Manhattan’s 3 transport hubs in post-Covid office market

TRD Insights: Focus may shift to Manhattan’s 3 transport hubs in post-Covid office market
Joe Germanotta at Art Bird & Whiskey Bar and Lady Gaga (inset) (Photo by Stephanie Ott/picture alliance via Getty Images; Lady Gaga by Kevin Mazur/Getty Images for NARAS)

Lady Gaga’s dad, MTA in rent feud over homeless at Grand Central

Lady Gaga’s dad, MTA in rent feud over homeless at Grand Central
350 Park

Vornado, Rudin mull 1,450-foot tower in Midtown East

Vornado, Rudin mull 1,450-foot tower in Midtown East
Suri Kasirer

WATCH: Suri Kasirer on the influence of her father’s Holocaust stories and lobbying hard for the Vanderbilt Corridor and Cornell Tech

WATCH: Suri Kasirer on the influence of her father’s Holocaust stories and lobbying hard for the Vanderbilt Corridor and Cornell Tech
JPMorgan is redesigning 270 Park after pushback over public space

JPMorgan is redesigning 270 Park after pushback over public space

JPMorgan is redesigning 270 Park after pushback over public space
Grand Central and Chrysler building in daytime

RXR joining TF Cornerstone, MSD Capital on $3B Grand Hyatt redevelopment

RXR joining TF Cornerstone, MSD Capital on $3B Grand Hyatt redevelopment
JPMorgan buys 667K sf of air rights from Grand Central for 270 Park

JPMorgan buys 667K sf of air rights from Grand Central for 270 Park

JPMorgan buys 667K sf of air rights from Grand Central for 270 Park
Board of 417 Park Avenue makes another push for sale

Board of 417 Park Avenue makes another push for sale

Board of 417 Park Avenue makes another push for sale
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...